FedEx lowering guidance for the quarter ending November 30th. New guidance is $1.45-$1.55, old guidance was $1.60-$1.75.
They cite rapidly rising fuel prices (even though they have dynamic fuel surcharges in place); they also note that less-than-truckload freight trends remain weak. CFO Alan B. Graf, Jr. says they are reviewing capital investment plans for further reductions. Down 5% pre-open, UPS also down 3%.
Kudos to Baird, who downgraded FedEx last night, saying "We expect the ongoing domestic freight recession, rising fuel prices, and FDX investment initiatives to negatively impact near-term earnings."
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